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63) MBWA can pick up attitudes and factual omissions that other forms of measurement miss.
64) In the past, a major drawback of an oral report was that there is no way to store the
information in the report for later reference.
65) What is measured in the control process is often less critical than how it is measured.
66) Some control criteria, such as employee satisfaction and absenteeism, are applicable to
almost any management situation.
67) A gap between actual performance and planned goals that falls within an acceptable range of
variation usually requires managerial action.
68) Henry Ford basing his assembly line on practices he viewed in Chicago slaughterhouses is an
example of benchmarking.
69) A single business cannot experience both underperformance and overperformance at the
same time.
70) Immediate corrective action might include changing the way employees are paid for their
work.
71) Basic corrective action focuses on identifying the cause of a performance deviation.
72) An example of revising a standard is a teacher who changes a grading scale because students
do poorly on an exam.
73) In a short essay, explain why what managers choose to measure can be more important than
how they measure in the control process.
74) In a short essay, describe the first step in the control process.
75) In a short essay, describe the second step in the control process.
76) In a short essay, describe the third step in the control process.
77) In a short essay, explain how managers determine what a significant deviation is.
78) In a short essay, explain the difference between immediate corrective action and basic
corrective action.
79) Which kind of control takes place before the actual work is carried out?
A) feedback
B) concurrent
C) recurrent
D) feedforward
80) A cell phone maker tests its new model with a sample audience when it is fully operational.
What kind of control is this?
A) pre-market control
B) feedback control
C) concurrent control
D) feedforward control
81) Which kind of control takes place while the actual work is carried out?
A) feedback
B) concurrent
C) reverse
D) feedforward
82) Direct supervision of employees is a form of ________ control.
A) concurrent
B) ineffective
C) feedback
D) feedforward
83) An action show producer has a read-through of a half-written show in which actors, writers,
producers, and the director are free to make comments and changes before the show is filmed.
What kind of control is being used?
A) feedback control
B) concurrent control
C) spontaneous control
D) feedforward control
84) A fast-food restaurant is querying prospective customers about the features they would like
to see in a new panini sandwich. What kind of control is being used?
A) concurrent control
B) feedback control
C) feedforward control
D) anticipation control
85) Which kind of control takes place after the actual work has been carried out?
A) feedback
B) forward
C) feedforward
D) concurrent
86) A basketball coach showing players how to position themselves on the court during practice
is carrying out ________, a form of concurrent control.
A) unstructured supervision
B) direct supervision
C) indirect supervision
D) feedback supervision
87) One advantage of feedback control over other forms of control is that it lets managers focus
on ________.
A) what is about to take place
B) how on target their planning efforts were
C) how effective their organizing efforts were
D) the task as it is being carried out
88) When feedback control shows that planning goals and actual performance were dramatically
different, the most likely conclusion is that ________.
A) planning was not on target
B) performance measurements were unreliable
C) planning was on target
D) goals do not need to be changed
89) An advantage of feedback control is that it improves ________.
A) motivation
B) productivity
C) groupthink
D) employee-employee relations
90) Managers exert financial control on an organization using ________ analysis.
A) activity
B) productivity
C) ratio and budget
D) productivity and resource
91) ________ is a measure of an organization’s ability to meet its current debt obligations.
A) Leverage
B) Activity
C) Liquidity
D) Profitability
92) ________ is a measure of an organization’s ability to meet its current debt obligations.
A) Profitability
B) Activity
C) Leverage
D) Liquidity
93) ________ is a measure of an organization’s ability to meet its current debt obligations.
A) Profitability
B) Liquidity
C) Activity
D) Leverage
94) ________ is a measure of how readily a company can use its assets to generate profits.
A) Profitability
B) Leverage
C) Liquidity
D) Activity
95) A company looks at its expenses and finds that its payments to freelancers increased
significantly over the past few months, exceeding the budget by 25 percent. This is an example
of ________.
A) using a budget for planning
B) using data to confirm a budget
C) justifying expenses with a budget
D) using a budget for monitoring and controlling
96) A company looks at its expenses and finds that its payments to freelancers increased
significantly over the past few months, exceeding the budget by 25 percent. Which of the
following is the most reasonable action for the company to take?
A) revise the budget
B) fire the people who were responsible for the expenses
C) ignore the expenses as an aberration
D) see what the expenses were for
97) A company looks at its expenses and finds that its electricity costs have increased, exceeding
the budget by 20 percent. Which of the following would be most likely to require immediate
action on the part of the company?
A) Overall costs for electricity have gone up by 25 percent.
B) Overall utility costs have gone up by 15 percent.
C) Overall costs for electricity have gone down by 5 percent.
D) Overall utility costs have stayed steady.
98) When a budget is formulated, it is being used as a(n) ________ tool.
A) organizing
B) controlling
C) planning
D) leadership
99) When a budget is used for controlling, it provides ________ against which resource
consumption can be compared.
A) quantitative standards
B) qualitative standards
C) flexible standards
D) nonnumerical standards
100) A household that cuts back on supermarket spending after going overbudget on its food
budget is using the budget as a(n) ________.
A) planning tool
B) controlling tool
C) organizing tool
D) leading tool
101) A family that is using a computer program to create a formal household budget is using the
budget as a(n) ________.
A) planning tool
B) controlling tool
C) organizing tool
D) leading tool
102) A management information system (MIS) provides managers with ________ data.
A) analyzed and processed
B) raw
C) unanalyzed
D) numerical
103) All of the following are important in efforts to protect information in an organization
EXCEPT ________.
A) firewalls
B) encryption
C) search engines
D) data backups